Risk Management Of Third-party Online Payment

Payment problem used to be important bottleneck in the development of electronic commerce. However, with the emergence of third-party payment, problem of the cost and the credit on trading is solved. Third party payment provides a safe, convenient and efficient mode of payment for both parties, especially small and medium-sized businesses and consumers. As a kind of third party payment, Internet development momentum is very strong. And it gradually comes into our daily life having significant impact on modern life.In turn, with benefit from the booming growth of electronic commerce in recent years, the development of Internet payment has entered a fast lane. And with the increasingly specification in the external development environment of Internet, the related enterprises have increasingly fierce competition. And, the industry also continues to grow rapidly. During the11th five-year plan, China’s Internet payment market scale growth sharply from$2007in100.9billion to$2011by2.2038trillion Yuan, with average annual compound growth rate of116.2%. The development of the Internet payment market has made remarkable achievement. It can be expected that Internet payment in China will enter golden period of development in the future. Hence, Choosing Internet payment as the object of study is very necessary, which has far-reaching significance.This paper studied on third-party Internet. Many scholars and institutions at home and abroad have been working on the third party payment and Internet payment. Basing on the document, we discussed the definition of third-party payment, industry characteristics and development process. By the concept of Internet payment in the analysis of its classification, the development in the present situation was made the detailed analysis. After analyzing the risk identification of Internet payment, a risk evaluation index system was set up. Quantitative analysis on the overall risk was discussed by using comprehensive fuzzy evaluation which is basing on analytic hierarchy process. Finally, in view of question found in the risk assessment, we raised external and internal control in Internet payment risk prevention system. Through the whole research process, this paper drew the following conclusion.1. It was discovered that Internet payment has great prospects for development by analyzing the current situation and discussing regulatory policy environment, existing market size, competition pattern and the existing main application fields in Internet payment. Therefore, it has great significance that how to make it standardize and develop the healthy development.2. Through overall risk identification and evaluation of Internet payment, we recognize that the development of the Internet payment is not yet ripe. Problem still existed in its use process such as policy risk, market risk and credit risk operation risk, liquidity risk and so on. The series of risk could be evaluated with the establishment of a risk evaluation index system for quantitative analysis.3. To prevent the risk of Internet payment, we can focus on the internal and external aspects. The external one was Standardized construction and network society environment development. The internal on was strengthening the safety management system for establishing credit supporting system, improving user authentication mechanism, and increasing staff training measures and so on. These steps can create a set of effective Internet payment risk prevention system.